Operator: Good day, ladies and gentlemen, and thank you for standing by. Welcome to Emerson's Investor Conference Call. During today's presentation by Emerson management, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. This conference is being recorded today, the 5th of February, 2013.

Emerson's commentary and responses to your questions may contain forward-looking statements, including the Company's outlook for the remainder of the year. Information on factors that could cause actual results to vary materially from those discussed today is available at Emerson's most recent Annual Report on Form 10-K as filed with the SEC.

I would now like to turn the conference over to our host Mr. Patrick Fitzgerald, Director of Investor Relations at Emerson. Please go ahead.

Patrick Fitzgerald - Assistant Treasurer and Director of IR: Thank you, Leica. I am joined today by David Farr, Chairman and Chief Executive Officer of Emerson; and Frank Dellaquila, Executive Vice President and Chief Financial Officer.

Today's call will summarize Emerson's first quarter 2013 results. A conference call slide presentation will accompany my comments and is available on Emerson's website at emerson.com. A replay of this conference call and slide presentation will be available on the website after the call for the next three months.

I'll start with the highlights of the quarter as shown on Page 2 of the conference call slide presentation. First quarter sales increased 5% to $5.6 billion, with underlying sales growing 6%. Sales trends were mixed across end markets and geographies, with the strongest growth in Process Management driven by robust energy end markets and favorable comparisons from supply chain disruption in the prior year.

Moving to Slide 5, cash flow and balance sheet; operating cash flow grew 66% driven by strong earnings and lower working capital growth. Free cash flow was up 115%, reflecting 97% conversion from earnings. Working capital as a percent of sales increased 90 basis points, as strong payables performance and lower inventory was more than offset by higher receivables.

Transcript Call Date 02/05/2013

Operator: Julian Mitchell, Credit Suisse.

Julian Mitchell - Credit Suisse: Firstly, I guess just on the (indiscernible) throughout last year. Maybe if you could just talk a little bit about what's driven that, if it's something you are seeing in the January order intake, or something in a specific region?

David N. Farr - Chairman and CEO: As we've been reporting in monthly orders, we have been a little bit more positive on the monthly order statements for the last couple months. Since September, October our order trends have turned up. In some of the businesses now in Climate Technologies, Network Power systems, Residential Solutions, they have all now become positive and driving on a continuing basis on three-month roll. So from my perspective, this has been improving. It's, I would say, a moderate amount of improvement from that standpoint, but just the global economies have stabilized and feel more comfortable for the financial institutions, and I think money is again flowing and people are starting to make those investments, though it's not a robust economic environment out there. Just look at what happened on average in the second half in the United States economy, and so in total it's still basically you're looking about 2%, 3% type of growth. We'll get into the various regions of the world next week, but I still see a 2%, 3%, 4% underlying growth in the general economic trend that we will be facing this year.

Julian Mitchell - Credit Suisse: Then just secondly, the issue of kind of mix comes up a lot in the slides in the different segments and how that affects your margin. How do you see that playing out over the balance of the year? Because, I guess, as you've emphasized, the margin growth is very front-end-loaded, is that because there is mix or something you think will carry on weighing on the margins over the balance of the year?

David N. Farr - Chairman and CEO: No, Julian, from my perspective, our business; in particular, Process business or the Climate business or the Residential Solutions business, in a given month or a quarter, we could have a surge of sales shipments from the standpoint of the systems versus our instrumentation. I would say the last three quarters -- not the most recent quarters, the last three quarters we've had pretty good mix, and we – from last year as the profitability of some of these businesses things went our way, and so Climate, even though they had down sales last year, we had pretty good mix from the type of business, and therefore they had to improve their profitability. Same thing with Process. If you look at the underlying quarter, Process had a very, very strong systems and solutions orders and shipment quarter; instrumentation a little bit weaker, driven by – the (projects) came in quite strong, a lot – and that will create a lower margin in the Process world. Same thing in Climate Technology. We expect that mix to come back as we look at our order books right now. We look at the order pace. I would expect that margin to come back, that's why we still believe that we'll have 10 to 20 basis points improvement consolidated, and I'll give you the business margins by each of the segments; the forecast next week, but it's not uncommon. As you hear me talk, we'll have a quarter, the mix goes the wrong way; quarter goes the right way, and I would say we had good margin improvement this quarter. It could have been better with the right mix, but we'll make that back up as we go into that second quarter. It just moves around. That's what happens.